| Actual | Previous | |
|---|---|---|
| Index | 49.1 | 49.9 |
Highlights
South Korea's manufacturing PMI showed a second consecutive month of contraction in the sector in March, with the survey's headline index falling to 49.1 from 49.9 in February. This survey has shown consistent weakness in the sector since mid-2024. In addition to reporting ongoing weakness in current conditions, respondents reported another month of strong price pressures and less confidence about the outlook.
Survey respondents reported a fall in output, stagnant new orders but strong growth in new export orders in March, with improved demand from elsewhere in the region and the United States. Respondents also reported the fifth consecutive reduction in payrolls and continue to expect below-average output growth over the next 12 months, with some citing concerns about global trade tensions. The survey shows another big increase in input costs and the biggest increase in selling prices since late 2022.
Survey respondents reported a fall in output, stagnant new orders but strong growth in new export orders in March, with improved demand from elsewhere in the region and the United States. Respondents also reported the fifth consecutive reduction in payrolls and continue to expect below-average output growth over the next 12 months, with some citing concerns about global trade tensions. The survey shows another big increase in input costs and the biggest increase in selling prices since late 2022.
Definition
The Purchasing Managers' Manufacturing Index (PMI) is based on monthly questionnaire surveys of selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
